One thing I've never understood about this is why the IRS couldn't just tax all profits worldwide, regardless of whether they're made by a 'foreign' company, and then give credits for taxes paid elsewhere? I'm a dual UK/US citizen, and this is how I have to do my US tax return. I can't just say 'oh, my foreign income was made by my 'foreign' self, so it doesn't count'.

It's *K*arl Popper.